Kapur, J.

1. This is an appeal by the Union of India against an appellate judgment and decree of the Senior Subordinate Judge affirming the decree of the trial Court granting a declaration and issuing an injunction against the Union of India. The plaintiff is a licensed vendor of country liquor in the Province of Delhi and in the Punjab and has been one for Several years.

2. By a document, Exhibit P. I, notice was given for the auction of a country liquor shop situate in Katra Barian for the year beginning from 1-4-1946, to 31-3-1947. The public auction was to be held on 20-3-1946, and it was so held by the Collector. It is admitted that the conditions of auction were read out to the intending bidders at the time of the auction on 20-3-1946 and they are marked as Exhibit D. W. 1/1 and only two of the conditions are relevant to the dispute :

"32. The Collector will not be bound to accept the highest bid. If in the opinion of the said officer the bid for any particular shop is excessive he will have the power to announce at that very time that if anybody exceeds the bid which is already too high, then the whole or a part of the bid shall be payable at once,"

"34. The person w